The United States has passed its first major national crypto law, marking a long awaited win for the digital asset sector.
The Genius Act passed on Thursday. It outlines a regulatory framework for stablecoins, a type of digital asset backed by traditional assets like the US dollar. Stablecoins are commonly used to move funds between tokens without the volatility of Bitcoin or Ethereum.
Congress approved the measure after years of lobbying by crypto firms. The House passed the bill Thursday, joining the Senate, which cleared it last month. Former president Donald Trump is expected to sign it into law Friday.
Industry players had poured millions into last year’s election, backing candidates across both parties. That included support for Trump, who once called crypto a scam. Since then, his views have shifted. He has formed business ties to the sector, including links to firms such as World Liberty Financial.
Supporters of the bill say it brings clarity to a fast-growing space. They argue that regulation will help digital assets move closer to mainstream acceptance. Under the law, stablecoins must be backed one-for-one by US dollars or similarly low-risk assets.
However, critics warn the bill creates more problems than it solves.
They argue that legitimising stablecoins without matching oversight leaves the financial system vulnerable. Some warn it could let large tech firms enter banking-style activities without equivalent regulation. Others say consumer protections remain thin, particularly in the event of insolvency or collapse.
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Analysts suggest the progress may stop here
Opponents also tried to frame the vote as political. They claimed that supporting the bill meant endorsing Trump’s private ventures, including crypto promotions tied to his family.
Despite that, the bill drew bipartisan support. About half of House Democrats backed it, along with most Republicans.
In a letter to Congress this spring, a coalition of consumer advocacy groups criticised the legislation. They argued that lawmakers misunderstood the core risks of digital assets. Passage, they said, would give “false confidence” to retail users who may assume these products are safe.
Two other bills also advanced through the House this week. One aims to block the Federal Reserve from launching a central bank digital currency. The other lays groundwork for broader cryptocurrency oversight. Both now head to the Senate, where Republicans hold a narrow majority.
But analysts say the progress may stop here.
Trump is reportedly exploring a presidential order that would let retirement accounts invest in private assets—like crypto, gold, and private equity. Still, many expect little follow-through.
“This is the end of crypto’s wins for quite a while—and the only one,” said Terry Haines of Pangaea Policy. “When the easy part, stablecoin, takes four to five years and barely survives industry scandals, it’s not much to crow about.”
Crypto’s road to legitimacy has been slow and expensive. Lawmakers struggled to define assets, never mind how to regulate them. Meanwhile, the industry spent millions courting influence while distancing itself from bad actors.
Finally Bitcoin surged past USD$120,000 this week. But some industry analysts view this legislative victory as symbolic at best.
